Analysis of transactions in the EUR / USD pair
Euro bulls tried to resume growth yesterday, even managing to form good buy levels in the EUR / USD pair. However, a large upward move did not occur, and the quote climbed only 40 pips up from 1.2145. Volatility was quite low, and the latest data on EU's industrial production did not have a serious impact on the market.
Trading recommendations for December 15
There is a high chance that the euro will again trade in a sideways channel today, especially since there are no important reports expected to be published. The only significant news is the upcoming data on France and Italy's inflation, but those are unlikely to give strong impact to the market.
In the afternoon, ECB Board Member Philip Lane will deliver a speech, and there will also be a report on US industrial production, where a weaker November reading could put pressure on the US dollar.
- Open a long position when the euro reaches a quote of 1.2163 (green line on the chart) and then take profit at the level of 1.2205. However, growth can only happen if there is good news on the post-Brexit trade agreement, and if data on France and Italy's inflation are much better than the forecasts.
- Open a short position when the euro reaches a quote of 1.2142 (red line on the chart) and then take profit around the level of 1.2085. Do this if the data on the eurozone comes out worse than the forecasts, and if the statements delivered by the ECB are negative.
Analysis of transactions in the GBP / USD pair
Pound bulls earned quite a lot of profit yesterday, when the quote moved 100 pips up from 1.3344. However, since the tense situation associated with the Brexit trade agreement persists, market volatility remains high, so all the bullish momentum was canceled out and the quote returned below 1.3344 at the end of the day.
Trading recommendations for December 15
The pound has a high chance of declining today, especially since the bullish impulse yesterday did not continue, and the market seems to be in favor of the bears at the moment. To add to that, a report on the state of the UK labor market will be published, and it is expected to come out weaker than the forecasts, which will most likely add pressure to the British pound. As for news on Brexit, they may lead to another explosion of volatility in the market.
- Open a long position when the quote reaches the level of 1.3350 (green line on the chart) and then take profit around the level of 1.3473 (thicker green line on the chart). Good news on Brexit may strengthen the position of the British pound.
- Open a short position when the quote reaches the level of 1.3307 (red line on the chart) and then take profit around the level of 1.3188. Bad news on Brexit will resume the downward trend in the GBP/USD pair.
